US 10Y TREASURY: the Jackson Hole effect

During the week markets were moving in a mixed mode, however, Friday brought the change, after the Fed Chair Powell's speech at Jackson Hole Symposium. The significant market reaction occurred when Chair Powell noted the possibility of further monetary policy easing in the coming period, implying a possible rate cut. Market is estimating, currently with 83% odds, that the next rate cut might occur at September's FOMC meeting. The 10Y US benchmark yields were moving around the level of 4,3% during the week, with a major move toward the 4,25% level at Friday's trading session.
Friday's move increased the probability that the currently major support level at 4,2% might be tested again in the coming period. Possibility during the week ahead. Still, it should be kept in mind that the Fed's major inflation gauge, the PCE index, is set for a release on Friday. Considering current sensitivity of markets on inflation figures, any deviation of the PCE indicator from market expectations might trigger higher market reaction.